Cardano (ADA) has recently struggled to break an important barrier despite the support of large investors and improving market conditions.
The price of ADA remains below key resistance levels. However, the prospects for a breakout look promising as large investors are actively accumulating ADA. If market conditions continue to improve, the price dynamics for Cardano may change.
Cardano Whales are optimistic
In April, the activity of large investors was high. Addresses holding between 10 million to 100 million ADA acquired over 420 million ADA worth about $289 million. This increased their holdings from 12.47 billion ADA to 12.89 billion ADA. Such sustained accumulation of Cardano by major holders is an important indicator of confidence in the long-term value of the asset.
Whales play a key role in potential price movements of ADA. Large-scale accumulation of coins by key market players can help shift market sentiment positively. This increases the chances of price growth.
Cardano Whales. Source: Santiment
The Relative Strength Index (RSI) is currently at a nearly two-month high. It is positioned in the positive zone above the neutral mark of 50. This indicates a growing bullish momentum.
Whale accumulation and a high RSI index suggest that the price of Cardano may soon rise significantly. Technical strength backed by the activity of large investors creates the prerequisites for a breakout through important resistance levels.
RSI Index. Source: TradingView
The price of ADA aims for a bullish breakout
Currently, trading is taking place slightly below the support level of $0.70, which the price defended earlier this week. A slight decline occurred after an unsuccessful attempt to overcome the resistance at $0.74. The inability to break through this level keeps ADA in a narrow range. However, a breakout is possible if market conditions continue to improve.
Resistance at the $0.74 level has remained a key barrier for Cardano for over five weeks. However, considering the supporting factors described above, the token may surpass $0.74 and rise to $0.80. A successful breakout above $0.74 will signal the beginning of more sustainable growth.
ADA Price Analysis. Source: TradingView
If ADA fails to stabilize above the $0.66 mark, the confidence of large investors may falter. A drop to $0.60 would negatively impact the optimistic forecast and could trigger a more significant correction. Such a development may delay ADA's achievement of higher levels.